How to Do an ACH Transfer Between Banks
Navigate ACH transfers with confidence. This guide clarifies the full process for secure electronic bank-to-bank transactions.
An Automated Clearing House (ACH) transfer is an electronic movement of money between banks or credit unions within the United States. This network facilitates many financial transactions. Individuals commonly utilize ACH for direct deposits, such as paychecks and government benefits, as well as for recurring bill payments and transfers between their own accounts at different financial institutions. The system offers a reliable and lower-cost alternative compared to other transfer methods, like wire transfers.
Information Needed to Initiate a Transfer
To initiate an ACH transfer, gather specific details. You will need the recipient’s full name or official business name. The recipient’s bank name is also required.
The recipient’s bank routing number is a nine-digit code that identifies their financial institution within the U.S. banking system. This number is typically found at the bottom of a check or can be obtained from the recipient or their bank’s online platform. The recipient’s bank account number specifies the exact account where the funds should be deposited. This number is also located on checks or accessible through the recipient’s bank.
Specify the exact transfer amount. An effective date for the transfer needs to be provided, indicating when you wish the transaction to be processed. An ACH credit involves “pushing” money from your account, while an ACH debit authorizes someone to “pull” money from your account.
Steps to Send an ACH Transfer
Once all necessary information is collected, begin by accessing your financial institution’s online banking portal or mobile application. Most banks provide a dedicated section for transfers or payments, often labeled “External Transfers,” “Send Money,” or “ACH Payments.” Navigating to this area will present options for initiating a new transfer.
Within the transfer interface, input the recipient’s details. This involves entering the recipient’s full name, their bank’s name, the routing number, and the specific account number into the designated fields. You will also specify the exact amount of money to be transferred and select the desired effective date for the transaction to occur.
After entering all required information, a review screen will display a summary of the transfer details. Verify all entries for accuracy to prevent errors that could delay or misdirect funds. Once confirmed, submitting the transfer initiates the process, and your bank will begin processing the transaction.
What Happens After Your Transfer
After submitting your ACH transfer, you will usually receive an immediate on-screen confirmation, often followed by an email notification from your bank. This confirmation serves as an acknowledgment that your transfer request has been received and is being processed. The actual movement of funds through the ACH network does not occur instantaneously.
ACH transfers operate on a batch processing system, meaning transactions are grouped and processed at specific intervals throughout the business day. Funds settle within one to three business days. Some financial institutions may offer same-day ACH processing for an additional fee, with transactions under a certain limit. Weekends and federal holidays do not count as business days for processing, which can extend the overall timeline for funds availability. Your banking platform provides a section where you can monitor the status of your initiated transfers, allowing you to track their progress until completion.